mlsanityData to 7 Oct 2026

Masked Diffusion Language Models are Strong and Steerable Text-Based World Models for Agentic RL

arXiv 2607.16204 ↗First posted 7 May 2026cs.AI cs.LGcited by 1

On the map: World models → Latent dynamics models and model-based RL

also in 2 more
Abstract (arXiv)

Recent growth in reinforcement learning (RL) has surfaced a need for diverse, specialized training environments. Hand-curated environments with fixed task and reward difficulties become ineffective signals as model performance improves, and sparse rewards over long horizons induce mode collapse on specific workflows or tool structures. World models that simulate environment states have matched pure rollout performance, making them promising for scaling diversity on-demand. However, autoregressive (AR) world models suffer from a left-to-right bias preventing conditioning on globally interdependent state anchors such as tool schemas, prior turns, and expected outcomes. We (i) formalize text-based world modeling as a steerable transition-dynamics problem decomposed into initial state, task context, tool schemas, domain rules, and steering directives, and (ii) curate 239,403 grounded state-action trajectories spanning nine open-source environments and twelve frontier model families. We compare AR LMs and masked diffusion language models (MDLMs), showing MDLMs, via bidirectional anchor-aware denoising, achieve better coherence, groundedness, and empirically validated rollout diversity than LLMs over 4x their parameter size, at comparable inference latency. We introduce a plug-and-play GRPO training framework with deterministic state checks, and perform zero-shot transfer ablations on three OOD environments (ScienceWorld, ALFWorld, AppWorld) across three 1.2B-7B agent backbones (LFM2.5, Qwen3, Mistral), achieving up to 47% absolute gains over baselines without environment-specific fine-tuning. We further conduct behavioral analysis of failure modes under adversarial scenarios and human evaluation on realism, outcome correctness, and training utility. We open-source our work to encourage research in this direction.

Key facts. Cited by 1 paper in the map (data through 7 Oct 2026). Placed in Latent dynamics models and model-based RL, one of 11 directions in World models. Builds on 80 of its 122 references that are in the map. First posted on arXiv 7 May 2026.

Builds on

80 of 122 references.

Closest ancestors · 4

Same direction, newest first

  1. 2025RLVR-World: Training World Models with Reinforcement Learning20 May
  2. 2024Open-World Reinforcement Learning over Long Short-Term Imagination4 Oct
  3. 2024Diffusion World Model: Future Modeling Beyond Step-by-Step Rollout for Offline Reinforcement Learning5 Feb
  4. 2023Mastering Diverse Domains through World Models10 Jan

Other references · 76

  1. 2024DeepSeekMath: Pushing the Limits of Mathematical Reasoning in Open Language Modelscited by 8,851
  2. 2025Qwen3 Technical Reportcited by 8,195
  3. 2023SWE-bench: Can Language Models Resolve Real-World GitHub Issues?cited by 3,193
  4. 2023Mistral 7Bcited by 3,065
  5. 2024Scaling LLM Test-Time Compute Optimally can be More Effective than Scaling Model Parameterscited by 1,928
  6. 2023WebArena: A Realistic Web Environment for Building Autonomous Agentscited by 1,908
  7. 2025gpt-oss-120b & gpt-oss-20b Model Cardcited by 1,258
  8. 2020ALFWorld: Aligning Text and Embodied Environments for Interactive Learningcited by 1,143
  9. 2025Large Language Diffusion Modelscited by 872
  10. 2024Simple and Effective Masked Diffusion Language Modelscited by 800
  11. 2019ALFRED: A Benchmark for Interpreting Grounded Instructions for Everyday Taskscited by 773
  12. 2025SFT Memorizes, RL Generalizes: A Comparative Study of Foundation Model Post-trainingcited by 655
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  4. 2026Terminal-Bench: Benchmarking Agents on Hard, Realistic Tasks in Command Line Interfacescited by 515
  5. 2025Process Reinforcement through Implicit Rewardscited by 478
  6. 2024AndroidWorld: A Dynamic Benchmarking Environment for Autonomous Agentscited by 450
  7. 2025GLM-4.5: Agentic, Reasoning, and Coding (ARC) Foundation Modelscited by 446
  8. 2023The Reversal Curse: LLMs trained on "A is B" fail to learn "B is A"cited by 399
  9. 2024Scaling Synthetic Data Creation with 1,000,000,000 Personascited by 397
  10. 2025Block Diffusion: Interpolating Between Autoregressive and Diffusion Language Modelscited by 385
  11. 2024Your Absorbing Discrete Diffusion Secretly Models the Conditional Distributions of Clean Datacited by 371
  12. 2024SWIFT:A Scalable lightWeight Infrastructure for Fine-Tuningcited by 345
  13. 2024Diffusion Models Are Real-Time Game Enginescited by 282
  14. 2025Reinforcement Learning with Verifiable Rewards Implicitly Incentivizes Correct Reasoning in Base LLMscited by 276
  15. 2024Scaling Diffusion Language Models via Adaptation from Autoregressive Modelscited by 268
  16. 2025Learning to Reason under Off-Policy Guidancecited by 266
  17. 2025SWE-smith: Scaling Data for Software Engineering Agentscited by 255
  18. 2024Monte Carlo Tree Search Boosts Reasoning via Iterative Preference Learningcited by 238
  19. 2024Scaling up Masked Diffusion Models on Textcited by 195
  20. 2025The Landscape of Agentic Reinforcement Learning for LLMs: A Surveycited by 195
  21. 2025DiffuCoder: Understanding and Improving Masked Diffusion Models for Code Generationcited by 184
  22. 2025APIGen-MT: Agentic Pipeline for Multi-Turn Data Generation via Simulated Agent-Human Interplaycited by 158
  23. 2025LLaDA2.0: Scaling Up Diffusion Language Models to 100Bcited by 154
  24. 2025SimpleTIR: End-to-End Reinforcement Learning for Multi-Turn Tool-Integrated Reasoningcited by 145
  25. 2025SDAR: A Synergistic Diffusion-AutoRegression Paradigm for Scalable Sequence Generationcited by 118
  26. 2025A Survey on Code Generation with LLM-based Agentscited by 104
  27. 2024AgentInstruct: Toward Generative Teaching with Agentic Flowscited by 88
  28. 2025Nemotron 3 Nano: Open, Efficient Mixture-of-Experts Hybrid Mamba-Transformer Model for Agentic Reasoningcited by 85
  29. 2025Revisiting Reinforcement Learning for LLM Reasoning from A Cross-Domain Perspectivecited by 75
  30. 2025The Tool Decathlon: Benchmarking Language Agents for Diverse, Realistic, and Long-Horizon Task Executioncited by 73
  31. 2019Jointly Measuring Diversity and Quality in Text Generation Modelscited by 61
  32. 2025Synthetic Data Generation Using Large Language Models: Advances in Text and Codecited by 61
  33. 2026Agent World Model: Infinity Synthetic Environments for Agentic Reinforcement Learningcited by 51
  34. 2026LLaDA2.1: Speeding Up Text Diffusion via Token Editingcited by 48
  35. 2026EnvScaler: Scaling Tool-Interactive Environments for LLM Agent via Programmatic Synthesiscited by 46
  36. 2025Synthetic Data Generation & Multi-Step RL for Reasoning & Tool Usecited by 45
  37. 2025Large Language Models Hallucination: A Comprehensive Surveycited by 45
  38. 2026DeepSearchQA: Bridging the Comprehensiveness Gap for Deep Research Agentscited by 44

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  1. 2026Autoregressive Diffusion World Models for Off-Policy Evaluation of LLM Agents
  2. 2025Taming Masked Diffusion Language Models via Consistency Trajectory Reinforcement Learning with Fewer Decoding Step
  3. 2025MDPO: Overcoming the Training-Inference Divide of Masked Diffusion Language Models
  4. 2025DAWM: Diffusion Action World Models for Offline Reinforcement Learning via Action-Inferred Transitions
  5. 2026Scaling World-Model Reinforcement Learning Through Diffusion Policy Optimization
  6. 2025Learning Unmasking Policies for Diffusion Language Models
  7. 2025Revisiting Multi-Agent World Modeling from a Diffusion-Inspired Perspective
  8. 2026Beyond Mode-Seeking RL: Trajectory-Balance Post-Training for Diffusion Language Models